Earlier than suing Coinbase, the SEC required that it solely commerce in Bitcoin – FT By Reuters

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© Reuters. FILE PHOTO: A smartphone with the Coinbase brand displayed and a illustration of cryptocurrency is positioned on a keyboard on this illustration taken June 8, 2023. REUTERS/Dado Ruvic/Illustration

(Reuters) – The U.S. Securities and Change Fee (SEC) has ordered Coinbase (NASDAQ::) to cease buying and selling in all cryptocurrencies besides bitcoin earlier than submitting a lawsuit in opposition to the cryptocurrency platform in June, the Monetary Instances reported Monday, citing the president. Govt Brian Armstrong.

“We actually had no selection at that time,” Armstrong informed the Monetary Instances. “Delisting each asset apart from bitcoin, which by the best way is just not what the legislation says, would have principally meant the top of the crypto business within the US.” .

He added “It type of made it a straightforward selection… Let’s go to courtroom and discover out what the courtroom says.”

The Securities and Change Fee has accused Coinbase of working illegally as a result of it did not register as an alternate. It additionally alleged that Coinbase traded no less than 13 crypto property which are securities that ought to have been registered, together with tokens similar to , and Polygon.

The Securities and Change Fee informed the Monetary Instances that its enforcement division has not filed formal requests to “companies to delist crypto property.”

“In the midst of the investigation, staff could share their view of conduct which may increase questions for the fee beneath securities legal guidelines,” the Monetary Instances mentioned, citing the SEC.

The regulator sued Binance in June, with each civil lawsuits a part of SEC Chairman Gary Gensler’s push to claim jurisdiction over the crypto business.

Gensler has described the crypto business as a “wild west” that has undermined investor confidence within the US capital markets. Crypto corporations say the SEC’s guidelines are unclear, and that the company overreached by making an attempt to manage them.

The Securities and Change Fee and Coinbase didn’t instantly reply to a Reuters request for touch upon the report.

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